KUALA LUMPUR (Nov 17): Butterfield FB Bhd, a manufacturer of coffee and tea powders, is seeking a listing on the ACE Market to raise funds to expand its production facility in Penang.
If successful, the expansion will more than triple the production capacity at its Bukit Minyak premises to nearly 12,600 metric tons each year and increase the storage capacity by 17%, the company said in its draft prospectus.
“We observe a growing market demand and rising popularity of matcha,” Butterfield said. “We plan to install a manufacturing line dedicated to the manufacturing of matcha powder blends, which comes with an automated packing process.”
A family-run and owned business, the company mainly manufactures coffee and tea extract powder blends under its house brand ‘Butterfield’ as well as trades third-party food ingredients and instant beverage premixes in Malaysia and Thailand.
For the 12 months ended April 30, 2025, Butterfield made a net profit of RM30.4 million on revenue of RM245.33 million. Nearly 60% of its revenue are from Malaysia, 34.5% from Thailand, and the rest from other Southeast Asian countries and China.
The company is in the midst of installing its second manufacturing line that is expected to begin operations by end of 2025 and the third line, dedicated to blending matcha powder, will start in the first quarter of 2026.
Proceeds from the proposed IPO will also be used to finance purchase and installation of a powder preparation system, mixing system, and packing system as well as the related mechanical and electrical works. The rest will be used as working capital and to defray listing expenses.
Apart from public issue of new shares, founder and non-executive deputy chairman Yeap Kim Siew and his son Yeap Chin Loon, who is also an executive director, will be selling part of their existing shares in Butterfield in the IPO.
All in all, the listing will offer up to a 27.8% stake in the company at a price to be determined later.
M&A Securities is the adviser, sponsor, underwriter and placement agent for the IPO.